Entrepreneurship to a great extent is a product of motivation. Motivation here refers to the inner drive that ignites and sustains behavior to satisfy needs.Behavior is always caused and it is not spontaneous. In other word, human behavior is goal directed towards satisfaction of needs.
Several research studies have been carried out to identify the factors that motivate people to start business enterprise. There are internal and external factors that motivate a person to start up an enterprise. Internal factors are: Educational background, occupational experience, desire to do something pioneering and innovative, desire to be free and independent and family background. On the other hand the external factors are: Assistance from government, financial assistance from institutions, availability of technology or raw material, encouragement from big business units and heavy demand for product.
Internal factors constitute the personality of the entrepreneur and thereby generate an inclination to adopt entrepreneurial activity. The presence of these factors is essential for entrepreneurial activity to take place. But entrepreneurial ambitions cannot fructify without a supporting environment.External factors providing this environment give a spark to entrepreneurship.
Among, the internal motivation the desire to do something creative was important. It means the desire to make contribution to the development of the state and country, to introduce an entirely new product in the market, to make full use of technology, to provide employment to intelligent men and women in the community etc.
The external factors, like assistance from financial and other institutions was rated the strongest motivator. Other factors include availability of surplus funds, sick units available at a cheap rate, success stories of first generation entrepreneurs, support of friends and relatives etc.In some cases there were compelling reasons like loss of job, death of father, dissatisfaction with the job held etc,prompting people to launch their own industries.
High need for achievement is essential for a successful entrepreneur.Achievement motivation can be developed through training and experience. Ambition is the level of all motives and nourishes achievement motivation. Lack of ambition or low level of ambition is the major cause of backwardness. Achievement motivation training is essential for entrepreneurship development. In these training laboratories are used for developing achievement motivation. These labs provide experimental learning situations which help the trainees to examine their outlook and attitudes and modify them.